Taking over for Mayer will be former AOL CEO Tim Armstrong. It wound up cutting the price by by $350 million and to split the cost of any legal liabilities resulting from the breaches.
She will take a compensation package presently worth around $127 million that includes severance pay and stock awards which will be fully conferred with the completion of deal.
"Given the inherent changes to my role, I'll be leaving the company", Mayer wrote in an email to employees on Tuesday that she also posted on Tumblr.
In this regard, Verizon Media and Telematics President Marni Walden commented: "The close of this transaction represents a critical step in growing the global scale needed for our digital media company". Armstrong will now be CEO of a new Verizon subsidiary called Oath, which will consist of Yahoo and various AOL services.
Seven West and AOL/Verizon will continue to invest in Yahoo7 and will look to build on Oath's consumer brands, original content, advertising technology, proprietary data and potential acquisitions. She debuted at Yahoo in January 2014.
Verizon Communications Inc. executives descended on the Silicon Valley headquarters of their latest acquisition, Yahoo!
The CEO's "readjustment" may refer to the fact that Verizon plans to cut about 2,000 jobs - 15% - of the 14,000 employees at the new combined company Oath.
"I think of the Oath business nearly like a shopping mall", Ms. Walden said in a phone interview from Yahoo's Sunnyvale, Calif., headquarters, where she had just addressed employees of the two companies.
But to be fair, Mayer wasn't exactly dealt a great hand when she joined Yahoo. "We have dominating consumer brands in news, sports, finance, tech, and entertainment and lifestyle coupled with our market leading advertising technology platforms", said Armstrong.
That collection of Yahoo assets will be renamed Altaba Inc.
The deal ends Yahoo as an operating company and leaves it with its stake in Chinese e-commerce company Alibaba and Yahoo Japan, its cash, convertible notes, certain minority investments, and a noncore portfolio of patents called Excalibur.